KOLKATA: A month ago, the department for the promotion of industry and internal trade (DPIIT) clarified certain aspects of 26 per cent foreign direct investment (FDI) in digital media. The ministry of information and broadcasting (MIB) has now directed the entities having foreign investment to share details of the company and its shareholding pattern along with the names and addresses of its directors and shareholders within one month.

They have to share other details like names and address of promoters, significant beneficial owners, a confirmation with regard to compliance with pricing, documentation and reporting requirements under the FDI Policy.

Entities which, at present, have an equity structure with FDI exceeding 26 per cent will have to inform MIB and take necessary steps for bringing down the foreign investment to 26 per cent by 15 October 2021 and seek approval of the ministry. To bring any fresh investment, the entities have to seek prior approval of the government.

“Every entity has to comply with the requirements of citizenship of board of directors and of the chief executive officers (by whatever name called). The entities are required to obtain security clearance for all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract or consultancy or any other capacity for the functioning of the entity, prior to their deployment. For this purpose, the entities will apply to MIB at least 60 days in advance and the proposed foreign personnel shall be deployed by the entity only after prior approval of this ministry,” the ministry added in the notification.

Earlier DPIIT clarified that the rule would apply to:- 

·        Entities uploading/ streaming news and current affairs on websites, apps, other platforms;

·        News agencies which supply news to digital media entities and/or news aggregators;

·        News aggregators which, using software / web applications, aggregate content from various sources in one location.